How to leverage your NFT
In Pawnfi Protocol, every user can easily collateralize his/ her NFT and borrow out P-Token without any liquidity limit. Loan amount is always set as 1,000 P-Token/ per NFT.
1. Loan -> Leverage
2. Select an NFT
3. Select Duration
Duration: Loan period
Grace period: It is an extra repayment period. NFT will be liquidated when grace period ends.
4. Confirm parameters -> Approve -> Submit transaction
Based on your loan duration and interest rate, withholding interest will be deducted from loan amount.
Interest = 0.274 P-Token per day (10% APR)
After confirming all the information, click [Approve] button to approve the transaction. After approval, click [Submit] button to initiate transaction.
5. How to repay?
You can access to [Dashboard] and find [My Records] to review the loan status.
In the detail page, you will be able to see all information of this order. Click [Approve] to authorize repayment. After approval, click [Repay] to initiate transaction. You can redeem your NFT after repaying your loan along with the interest accrued during the period.
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